Rand a touch firmer, vulnerable to US data

Published Nov 26, 2014

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Johannesburg - The rand was slightly firmer against the US dollar on Wednesday, taking its cue from Asian currencies, although it was likely to come under renewed pressure as signs of a US economic recovery boosted the greenback.

At 08:59 SA time the rand was up 0.11 percent at 10.9575 against the dollar compared to Tuesday's closing level in New York.

Government bonds also edged higher, pulling the yield for the 2026 benchmark 2 basis points lower to 7.765 percent.

Traders said a raft of US data, including consumer sentiment and new home sales, would give further clues on whether the US economic recovery was gaining traction.

This would back the case for monetary policy tightening in the world's largest economy, denting appetite for high-yielding but riskier emerging currencies like the rand. - Reuters

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